89-95

Procurement Notice

(July 7, 1997)

QUICK-CLOSEOUT PROCEDURE

PURPOSE:Todelete the contract value dollar
threshold for when quick-closeout may be used without the prior
approval of the installation procurement officer and replaces
it with a requirement to perform a risk assessment.

BACKGROUND: NFS 1842.708(a)(2)(ii) limits the use
of quick-closeout to contracts with a value, excluding fee, not
greater than $2 million unless the prior approval of the installation
procurement officer is obtained. This entails the preparation
of a deviation package for each contract above the threshold
for which quick-closeout is to be used. Several NASA installations
have processed a number of such deviations over the last few years.
In addition, one installation has twice requested and been granted
a class deviation to the NFS $2 million threshold in order to
handle the number of contracts above that amount for which the
use of quick-closeout procedures was desired. We believe the
performance of a risk assessment is a better tool than a limitation
on the contract value for ensuring that quick-closeout is properly
used.

REGULATION:Section 1842.708 is revised
as set forth in the enclosed replacement pages to the NFS.

REPLACEMENT PAGES:You may use the enclosed pages
to replace pages 42:5 and 42:6 of the NFS.

REGULATORY COMPLIANCE:This PN was published
as a final rule in the Federal Register (62 FR 36227-36228, July
7, 1997).

EFFECTIVE DATE:This PN is effective as
dated and shall remain in effect until canceled or superseded.